Credito Emiliano (CE) Q3 2025 earnings summary

Executive summary

• Consolidated net profit for 9M25 reached €506.4 million, up 4.2% year-over-year, including a €98.6 million gain from the sale of merchant acquiring activities; normalized net profit was €407.7 million.

• Strong commercial expansion and digital transformation drove higher average loan volumes, recurring revenues, and customer acquisition, with over 137,000 new customers.

• Asset quality remained robust, with a gross NPL ratio between 1.67% and 2.2%, and cost of risk at 7 bps.

• The Group maintained a strong capital position, with CET1 ratio between 16.23% and 17.5%, and Total Capital Ratio up to 19.4%.

• Operating expenses rose 5.7% year-over-year, reflecting investments in digital innovation and IT.

Financial highlights

• Operating income for 9M25 was €1,402.5 million, down 7.1% year-over-year; core operating income rose 2.7% year-over-year.

• Net interest income declined 14.6% year-over-year to €723.6 million, while non-interest margin increased 2.5% to €678.9 million.

• Total customer funding reached up to €110 billion, with direct deposits up 5.0% and AUM plus insurance reserves up 10.0% year-over-year.

• Loans to customers grew 4.2% year-over-year to €36.1 billion, outperforming industry growth.

• Cost of credit remained low at €18.4 million (0.07% annualized).

Outlook and guidance

• Management expects stabilization of the financial margin and continued growth in recurring revenues and commercial volumes, leveraging business diversification, digital investments, and ESG initiatives.

• Moderate growth is expected in Europe for the remainder of 2025, with high uncertainty due to geopolitical tensions.